Advantages of automated cash flow management system for midmarket businesses

1. Gain real-time cash visibility with automated data gathering

PwC’s survey shows that 26% of daily global cash is not visible to the corporate treasury. Hence, treasurers are stuck with outdated or inaccurate cash positions.
This leads to:

• Inaccurate cash flow forecasts
• Inefficient working capital
• Incorrect hedging strategies

As a result, companies may lose strategic opportunities. And there can be short-sighted decisions.
An automated cash flow management system is a game-changer for this. It assembles data from different sources into a single system automatically. It also automatically classifies the bank transaction category based on transaction details.

2. Enhance data efficiency through automatic reconciliation

Cash flow management software provides these features in bank reconciliation:

• Automates reconciliation based on custom and standard tagging rules
• Maintains bank connections, balances, and account-level reconciliations
• Handles exceptions via manual reconciliation of transactions and outstanding statement items

3. Faster access to cash and transparent decision-making

Financial transparency is a key advantage of small business cash flow management software. Besides, cash flow management software improves planning by:

• Providing CFOs with continuous access to data
• Providing a single data repository for transactions
• Automating bank reconciliation of cash balances to prior day cash activities
• Tracking intercompany balances and notional pools
• Tracking bank signatories
• Plan for investment and debt based on credit line availability

The power of data defines good cash flow management. Regular cash flow tracking improves the management of investments, assets, expenses, and debt.

In an ever-expanding digital environment, the market is prone to fluctuations. So, small businesses and mid-size businesses must become more agile and transparent to manage daily cash flows. With emerging technologies like RPA, the future of cash management can improve a lot.

With an automation system, business owners or managers can:

• Focus on high-level issues
• Analyze how to improve business processes
• Borrow early
• Explore future growth scenarios
• Get accurate data

Benefits with HighRadius automated cash flow management software

HighRadius cash flow management software helps SMBs by providing the following features:

• Effortless integration via APIs and sFTP:

It connects with banks, ERPs, and independent market data systems. It processes files in any format and categorizes transactions based on:

• Banks
• Accounts
• Regions
• Categories

and displays them in customizable templates.

• Automation of tedious tasks:

Automated bank statement processing and reconciliation help treasury:

• Save time
• Detect fraudulent transactions
• Find discrepancies in bank statements
• Focus on higher-value tasks
• Affluent reporting with proactive decision-making:

Global cash visibility contributes to better reporting and better long-term management. This also improves credibility with external stakeholders.

• Increase in profit:

Informed and timely acquisition or funding decisions help:

• lower interest expense
• increase interest income

Moreover, the ROI increases due to time and cost savings.

Customer success story

A $10 million global industry leader faced these challenges:

• Manual effort due to the lack of ability to integrate with the sources
• High variance in forecasts due to accounts receivables and accounts payable
• A spreadsheet-based process that lacks scalability
• No visibility on where the funds are and how much they have

By using the HighRadius cash flow management system, it achieved the following results:

• Continuous global cash visibility that enabled them to:
• Make better decisions
• Manage the vendor payments better
• Automate recurring tasks